The Dow Jones industrial average rose 157.58 points, or 1.1 percent, on Tuesday, to 14,756.78, winning back more than half of the 265 points it lost a day earlier. The Standard & Poor's 500 index logged its second-best day of the year.

The S&P 500 climbed 22.2 points, or 1.4 percent, to 1,574.57. It was the biggest gain since Jan. 2.

Gold, which was at the epicenter of Monday's sell-off, rose $26.30 to $1,387.40 an ounce, a gain of 1.9 percent. The Russell 2000 index climbed 1.8 percent to 922.30. It fell 3.8 percent on Monday.

Consumer prices eased 0.2% last month

U.S. consumer prices declined 0.2 percent in March following a 0.7 percent rise in February as the cost of gas fell sharply and food prices were unchanged.

The U.S. Labor Department said Tuesday that prices for gasoline fell 4.4 percent, clothing dropped 1 percent, the most in 12 years, and furniture eased 0.3 percent. Except for February's increase, consumer prices have declined or been unchanged in four of the past five months.

Production in a subsewt — factories, mines, utilities — rose 0.4 percent in March from February. Production of autos and auto parts surged for the second straight month. Cold weather pushed utility output up 5.3 percent.

Dallas-based Energy Future Holdings warned regulators it may file for bankruptcy. Analysts say bankruptcy may impact its unregulated subsidiaries, including Luminant Generation, the largest generator of electricity in Texas, and TXU Energy, the state's largest electricity retailer.